CLA Outlook — Key Insights for Sound Financial Strategies

Take steps to prepare for changing scenarios.
July 7 Weekly Insights
Big Tech helps propel S&P500 to another record close
During 2Q25, investors drove the S&P 500® up 20% from its April lows to a record high of 6,210.49. The rally was driven by strong earnings growth in Big Tech and tax cut optimism, while investors seemed to have shrugged off prior concerns about inflation, tariffs, and geopolitical risks. The 2Q25 rally has extended valuations in certain sectors, which is why CLA continues to include Small Cap and Quality stocks in our strategies.
ADP® National Employment Report came in far below market expectations in June
The ADP® National Employment Report indicated that private employers lost 33,000 jobs in June, contrary to expectations for a gain of 100,000, with small companies experiencing the largest losses. The Bureau of Labor Statistics is set to release its June Jobs Report on July 3, with expectations for an increase of 110,000 new jobs and a slight rise in the unemployment rate to 4.3%. The weaker than expected jobs report supports CLA’s view that the economy is set to slow, and the Fed should start cutting rates sooner, rather than later.
Advisors and QOZ investors should begin planning now on ways to fund the deferred capital gains taxes, due April 2027
With limited distributions expected from QOZ property recapitalizations, investors and advisors should begin the planning process now. Planning now can help identify additional options that may not be available next year, therefore leading to a more informed and comprehensive decisions making process.
 
Strategic Steps
5 Actions Portfolio Owners Should Take Considering Market Volatility
During uncertain times, successful investors take strategic steps to prepare for varied scenarios. Explore key actions you can take to navigate these periods:
  • 1. Review your asset allocation
  • 2. Harvest tax losses
  • 3. Make Roth conversions
  • 4. Put excess cash to work
  • 5. Consider gifting strategies
  • We can help
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